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Endowments

Harvard's Endowment Grows, But University Faces Financial Pressures

Strategic Insights

— 1 min read

Harvard University's financial report released on Thursday revealed that its endowment grew to nearly $57 billion in the last fiscal year, an increase of $3.7 billion. However, the university faced financial difficulties due to federal cuts, including the loss of $116 million in research funding. The university's operating revenue was close to $6.7 billion, but it recorded an operating loss of about $113 million, its first since the coronavirus pandemic.

Key Takeaways:

  • Harvard's endowment grew to nearly $57 billion in the last fiscal year, an increase of $3.7 billion.
  • The university faced an operating deficit of $113 million, its first since the coronavirus pandemic, due to the loss of $116 million in research funding.
  • Harvard's operating revenue was close to $6.7 billion, but it was not enough to offset the losses.
  • The university has spent months telegraphing financial headwinds, including issuing over $1 billion in long-term debt, laying off workers, and imposing a hiring freeze.
  • Harvard expects to account for court-reinstated funding in the fiscal year that started July 1.
  • The university's "services purchased" category showed expenses of about $978 million, up from approximately $921 million in the previous year.
  • Harvard leaders warned of "daunting challenges" ahead, including likely curbs in federal research funding throughout higher education and a coming increase in the excise tax on the nation's largest university endowments.

Statistics:

  • Harvard's endowment: $57 billion (up from $53.3 billion in the previous year)
  • Increase in endowment: $3.7 billion
  • Operating revenue: $6.7 billion (up from $6.5 billion in the previous year)
  • Operating loss: $113 million
  • Research funding shortfall: $116 million
  • Long-term debt issuance: over $1 billion
  • Expenses in "services purchased" category: $978 million (up from $921 million in the previous year)
  • Increase in excise tax on university endowments: expected in the future

Sources:

  • Harvard University (2024 financial report)
  • The New York Times (September 2024 article)
  • Harvard University (September 2024 court ruling)
  • The Trump administration (federal funding cuts, disputed in court)

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